Maldives Population: 393,988

A sultanate since the 12th century, the Maldives became a British protectorate in 1887. It became a republic in 1968, three years after independence. President Maumoon Abdul GAYOOM dominated the islands' political scene for 30 years, elected to six successive terms by single-party referendums. Following political demonstrations in the capital Male in August 2003, the president and his government pledged to embark upon democratic reforms including a more representative political system and expanded political freedoms. Progress was sluggish, however, and many promised reforms were slow to be realized. Nonetheless, political parties were legalized in 2005. In June 2008, a constituent assembly - termed the "Special Majlis" - finalized a new constitution, which was ratified by the president in August. The first-ever presidential elections under a multi-candidate, multi-party system were held in October 2008. GAYOOM was defeated in a runoff poll by Mohamed NASHEED, a political activist who had been jailed several years earlier by the former regime. President NASHEED faced a number of challenges including strengthening democracy and combating poverty and drug abuse. In early February 2012, after several weeks of street protests following his sacking of a top judge, NASHEED resigned the presidency and handed over power to Vice President Mohammed WAHEED Hassan Maniku. In mid-2012, the Commission of National Inquiry was set by the Government to probe events leading to the regime change. Though no evidence of a coup was found, the report recommended the need to strengthen the country's democratic institutions to avert similar events in the future, and to further investigate alleged police misconduct during the crisis. Maldives officials have played a prominent role in international climate change discussions (due to the islands' low elevation and the threat from sea-level rise) on the United Nations Human Rights Council, and in encouraging regional cooperation, especially between India and Pakistan.

Islamic religious legal system with English common law influences, primarily in commercial matters

Suffrage:

18 years of age; universal

Executive branch:

chief of state: President Mohamed WAHEED Hassan Maniku (since 7 February 2012); Vice President Mohamed Waheed DEEN (since 22 February 2012); note - the president is both chief of state and head of government

head of government: President Mohamed WAHEED Hassan Maniku (since 7 February 2012)

cabinet: Cabinet of Ministers is appointed by the president (For more information visit the World Leaders website )

elections: president elected by direct vote for a five-year term (eligible for a second term); election last held on 7 September 2013 with a second round vote scheduled for 28 September 2013 (next election to be held in 2018)

unicameral Parliament or People's Majlis (77 seats; members elected by direct vote to serve five-year terms); note - the Majlis in February 2009 passed legislation that increased the number of seats to 77 from 50

highest court(s): Supreme Court (consists of the chief justice and 6 judges) judge selection and term of office: Supreme Court judges appointed by the president in consultation with the Judicial Service Commission - a separate body of selected high government officials and the public - and upon confirmation by voting members of the People's Council; judges serve until mandatory retirement at age 70

Tourism, Maldives' largest economic activity, accounts for 28% of GDP and more than 60% of foreign exchange receipts. Fishing is the second leading sector, but the fish catch has dropped sharply in recent years. Agriculture and manufacturing continue to play a lesser role in the economy, constrained by the limited availability of cultivable land and the shortage of domestic labor. Lower than expected tourist arrivals and fish exports, combined with high government spending on social needs, subsidies, and civil servant salaries contributed to a balance of payments crisis, which was temporarily eased with a $79.3 million IMF Stand-By agreement. However, after the first two disbursements, the IMF withheld subsequent disbursements due to concerns over Maldives' growing budget deficit, and the government has been seeking other sources of budgetary support ever since. A new Goods and Services Tax (GST) on tourism introduced in January 2011, on general goods and services in October 2011, and a new Business Profit Tax introduced in July 2011 have provided a boost to revenue. Economic growth slowed to 3.4% of GDP in 2012, compared to 7.0% in 2011 because of slower tourist arrivals and weak global conditions. Diversifying the economy beyond tourism and fishing, reforming public finance, increasing employment opportunities, and combating corruption, cronyism, and a growing drug problem are major near-term challenges facing the government. Gross foreign reserves at the end of November 2012 were approximately $356 million, compared with $326 million in 2011, and were sufficient to finance only 2.6 months of imports. Over the longer term Maldivian authorities worry about the impact of erosion and possible global warming on their low-lying country; 80% of the area is 1 meter or less above sea level.

The Maldives National Defense Force (MNDF), with its small size and with little serviceable equipment, is inadequate to prevent external aggression and is primarily tasked to reinforce the Maldives Police Service (MPS) and ensure security in the exclusive economic zone (2008)